**D. Term and Rent** (Rent shall mean Interim Rent and Basic Term Rent) **.**




|  |  |  |  |
| --- | --- | --- | --- |
|  | 1. |  | Interim Rent. For the period from and including the Commencement Date to the Basic
Term Commencement Date (**“Interim Period”**), Lessee shall pay as Rent (**“Interim Rent”**) for
the Aircraft, the product of the Daily Lease Rate Factor times the Capitalized Lessor’s
Cost of the Aircraft on this Annex B (SN     ) times the number of days in the Interim
Period. Interim Rent shall be due on **January 2, 2006**. |
|  |
|  | 2. |  | Basic Term Rent. Commencing on **January 2, 2006** and on the same day of each **month**
thereafter (each, a **“Rent Payment Date”**) during the Basic Term, Lessee shall pay as Rent
(**“Basic Term Rent”**) the product of the Basic Term Lease Rate Factor times the
Capitalized Lessor’s Cost of the Aircraft on this Annex B (SN     ). |



**E. Insurance.**




|  |  |  |  |
| --- | --- | --- | --- |
|  | 1. |  | Public Liability: **$** **50,000,000.00** total liability per occurrence. |
|  |
|  | 2. |  | Casualty and Property Damage: An amount which is not less than the then
Stipulated Loss Value of the Aircraft. |



**F. Funding Holdback.**